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Quickly calculate real estate rental yield and evaluate property investment value.
Please enter property price and monthly rent to view returns.
The raw rental yield before deducting any expenses, reflecting the property's basic profitability.
Annual Rent ÷ Total Property Price × 100%
The actual return after deducting annual expenses such as property management fees, maintenance, and taxes, more accurately reflecting investment returns.
(Annual Rent − Annual Expenses) ÷ Total Property Price × 100%
The return calculated based on the actual down payment invested, measuring the efficiency of capital utilization under leverage.
Annual Net Income ÷ Down Payment × 100%
Overview
Understand what the tool solves, how it works, and the boundaries of its data.
Rental yield compares a property's rent with its price or value as a percentage. This calculator uses the property price entered as the denominator and annualizes monthly rent by multiplying it by 12. It reports a gross yield before expenses and a net yield after subtracting the annual expenses you enter. It does not look up a home's value, rent, tax bill, or local market data; the figures come from your inputs.
Annual rent = monthly rent × 12
Gross yield = annual rent ÷ property price × 100
Net annual income = annual rent − entered annual expenses
Net yield = net annual income ÷ property price × 100
Monthly net income = net annual income ÷ 12
Cash-on-cash result shown = net annual income ÷ entered down payment × 100
For example, a $250,000 property renting for $2,000 per month produces $24,000 in annual rent. With $6,000 in annual expenses, the calculator gives a 9.60% gross yield, $18,000 annual net income, a 7.20% net yield, and $1,500 monthly net income. If you also enter a $50,000 down payment, its displayed cash-on-cash figure is 36.00%. These are arithmetic comparisons based on the supplied values.
The displayed payback estimate is 100 divided by a positive net yield. In this example it is about 13.9 years. It is a simple reciprocal of the yield, not a forecast of when an owner will recover all money invested.
For a useful comparison, express the property price, monthly rent, annual expenses, and down payment in the same currency. The calculator does not identify currencies or convert amounts. Compare properties over the same time basis and use a consistent definition of price, such as purchase price for every property or current value for every property.
Guide
Follow the workflow and verify inputs and outputs with practical examples.
Enter the property price or value you intend to use as the yield denominator. Use the same convention for each property being compared.
Enter expected monthly rent. The calculator assumes 12 months at that amount when it calculates annual rent; it does not apply a vacancy percentage.
Annual expenses are optional; a blank or unparseable amount is treated as zero. Include the yearly costs you want reflected in the simplified net figure. Down payment is optional and is used only as the denominator for the displayed cash-on-cash result when it is greater than zero.
Review the gross and net yields, income amounts, and any additional results that appear. Use the copy controls beside income figures as needed. Reset clears the entered values.
Use cases
See how the tool fits into real work and everyday tasks.
A buyer can enter the asking price and expected monthly rent for each listing, then compare gross yield. Adding estimated annual expenses shows how those assumptions change the net result. Follow up on rent evidence, property condition, and neighborhood risks separately.
An owner can adjust the annual expense total to see how a higher maintenance or insurance budget changes net income and yield. Keep the underlying cost list outside the calculator so estimates can be checked and updated.
Entering a down payment adds a simple net-income-to-down-payment percentage. This can help compare assumptions when the expense basis is consistent, but financing payments and other cash invested are not incorporated in that result.
Q&A
Find concise answers to common questions and confusing cases.
Gross yield uses annual rent before expenses. Net yield subtracts the annual expense amount you entered first. Because the calculator does not require an expense estimate, a blank expense field makes net yield equal gross yield.
There is no separate vacancy or mortgage input. If you want to reflect estimated lost rent in the simplified net figure, you could include it in annual expenses, but the result will not separately identify vacancy. Mortgage interest, principal, and payment schedules are not modeled.
No. It divides the calculated annual net income by the down payment entered. It does not subtract mortgage payments or include closing costs, additional cash contributions, taxes, changes in property value, or later cash flows, so it is only a narrow comparison metric.
The estimate appears only when net yield is positive. It is calculated as 100 divided by net yield, so zero or negative net yield does not produce a payback figure.
Notes
Review scope, result limitations, and important precautions before use.
This is a simplified calculator, not a full US real estate underwriting or tax tool and not investment advice. Results depend on the values and cost categories you choose. Annual expenses are not classified for tax purposes, and the tool does not decide whether a cost is deductible, depreciable, or a capital improvement. IRS Publication 527 explains that residential rental income and expenses can involve distinctions such as maintenance versus improvements and other tax rules; consult current federal, state, and local guidance or a qualified tax professional for your situation. The calculator also omits vacancy unless you include an estimate in expenses, financing, acquisition and closing costs, property appreciation or depreciation, rent changes, and the timing of cash flows. A yield percentage or payback estimate is not a promise of profit or recovery of your investment.
Reference: IRS Publication 527 (2025), Residential Rental Property describes US rental income and expenses, including maintenance, insurance, taxes, interest, repairs, and improvements. Checked October 2, 2026.
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